Commerce

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Browsing Commerce by Subject "Small and Medium Enterprises"

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    Impact of Taxation Policies on the Growth of Small and Medium Businesses in Blantyre, Malawi
    (International Journal of Research Publication and Reviews, 2025) Nagarajan, Sankara Nayagam
    This study examines the impact of taxation policies on the growth of small and medium enterprises (SMEs) in Blantyre, Malawi. The primary objectives are to assess how tax policies influence SME performance, evaluate the effects of high tax rates on profitability and sustainability, and analyze the role of tax reforms in promoting or hindering SME growth. A descriptive research design was employed, utilizing qualitative and quantitative methods. Data were collected from 100 SMEs through structured questionnaires, interviews, and observations, focusing on business registration, years in operation, number of employees, perceptions of tax policies, VAT compliance, and tax filing processes. Grounded in the ability-to-pay theory and optimal taxation theory, the data were analyzed using SPSS and Microsoft Excel through correlation and regression techniques to examine the relationships between taxation and SME growth. The findings indicate that while taxation is essential for government revenue, high tax rates, complex filing procedures, and limited awareness of tax policies create significant challenges for SMEs. Many SMEs struggle with compliance due to financial and technical limitations, resulting in reduced profitability and hindered expansion. Furthermore, VAT policies are often perceived as unfavorable, adding to their financial burdens. The study concludes that tailored tax reforms—such as simplified tax regimes, lower tax rates, and improved taxpayer education—can enhance SME growth and sustainability. It recommends that policymakers balance revenue collection with SME development by introducing tax incentives and reducing bureaucratic hurdles.